Benchmark indices surged in early trade, as Asian markets were higher and the Japanese Nikkei recovered early losses and was trading with gains.
The rally was largely on hopes that there might not be any interest rate cuts in the US, by the US Federal Reserve in Sept 2016. However, global markets are expected to keenly watch the US Non Farm Payrolls data later this week, which if remains robust, could push the US Fed to hike rates earlier.
The Shanghai Composite was virtually flat in trade.
Leading the set of early gainers were PSU banking stocks like Bank of Baroda, which was up 1.5 per cent in early trade. The other gainer was BPCL, which moved higher, following a sharp drop in the prices of crude oil. A drop in crude 0il, benefits oil refineries like BPCL, HPCL and Indian Oil.
Zee TV and Idea were the only early losers from the Nifty space. Shares in Welspun India, which lost heavy ground last week, continued to drop lower. The stock hit a new 52-week low on the NSE of Rs 47.50.
The company's shares have been constantly falling after Target Corporation of the US, decided to severe ties with the company.
Meanwhile, the rupee was trading at 67.10 to the US dollar.